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Thursday, 20 September 2012 - Exclusive: Facebook to charge merchants to run offers |
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Follow Reuters Facebook Twitter RSS YouTube Read Exclusive: Western report - Iran ships arms, personnel to Syria via Iraq 19 Sep 2012 Samsung to add iPhone 5 to U.S. lawsuits vs Apple 9:27am EDT Factory, jobless claims data signal weakness 11:00am EDT Madoff victims to receive $2.48 billion payout 10:15am EDT Pawlenty to leave Romney campaign, head bank lobbying group 12:39pm EDT Discussed 270 New video shows Romney saying Palestinians don’t want peace 119 Romney derides Obama supporters in hidden camera speech 98 Ryan, taking hard line, vows to repeal Obama healthcare law Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption  World Record attempts A look at the Guinness World Record attempts that have been made.  Slideshow  Battle for Syria The battle for Syria's biggest city, Aleppo.  Slideshow  Exclusive: Facebook to charge merchants to run offers Tweet Share this Email Print Related News Groupon launches credit card payment business Wed, Sep 19 2012 Facebook CEO's 'search' comments raise hopes, questions Wed, Sep 12 2012 Facebook CEO dangles search and mobile, shares rally Wed, Sep 12 2012 Japan Airlines sets IPO at $8.5 billion in sign of strong demand Mon, Sep 10 2012 Facebook rules out share sale to cover tax bill Wed, Sep 5 2012 Analysis & Opinion Obama may find an exceptional friend in Facebook The Facebook investors’ lament Related Topics Tech » Small Business » Media » Facebook » 1 of 2. A Facebook logo on a computer screen is seen through a magnifying glass in Bern in this file photo illustration taken May 19, 2012. Facebook Inc said it will start charging businesses to run Offers on its social network, turning a previously free service into a potential revenue generator at a time when Wall Street is demanding new sources of growth and profit from the company. Credit: Reuters/Thomas Hodel/File By Alistair Barr and Alexei Oreskovic SAN FRANCISCO | Thu Sep 20, 2012 10:21am EDT SAN FRANCISCO (Reuters) - Facebook Inc said it will start charging businesses to run Offers on its social network, turning a previously free service into a potential revenue generator at a time when Wall Street is demanding new sources of growth and profit from the company. Facebook launched Facebook Offers earlier this year, letting retailers and other local merchants send deals to their Facebook fans. Users claim the offers from their News Feeds and redeem the vouchers at stores to get discounts. The service has been free, but in coming weeks Facebook will require merchants to pay at least $5 on related ads to promote each Facebook Offer to a targeted audience of fans and friends of fans. The cost will vary based on the size of a company's Facebook pages. Since Facebook went public in May, the company has been under pressure from Wall Street to show how it can turn its giant social network into a money machine. Facebook shares have lost about 40 percent of their value since the IPO. The commerce potential of Facebook, known as f-commerce, has yet to materialize, partly because retailers have been able to feast on a host of free tools on the social network to attract customers. Tying Facebook Offers to a paid ad service suggests the company is working to change this. "We think this aligns incentives nicely," said Gokul Rajaram, director of product management for Facebook's advertising and Pages businesses. "The best results on Facebook Offers will come from organic distribution plus paid distribution." In the past, some Facebook Offers have not been relevant to all users, partly because some people saw deals in their News Feeds from merchants located far away from where they live, Rajaram added. "The requirement to pay for related ads will focus merchants on who and where they want the offer to reach," he said. Facebook is also expanding Offers to online-only businesses, he added. Before, the service was available only to merchants with physical locations. Facebook is also adding barcodes for offers, so customers can redeem offers more easily. The barcodes work globally, Rajaram noted. The executive declined to disclose how many Facebook Offers have been run so far, how many merchants have taken part, or how many deals have been claimed and redeemed by consumers. However, he said Facebook is "very happy" with the success of its Offers business. "That's why we're expanding and investing more in it," Rajaram said. (Reporting by Alistair Barr and Alexei Oreskovic; Editing by Phil Berlowitz) Tech Small Business Media Facebook Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) gossom wrote:   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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